India’s trade deficit widened to $30.21 billion in September from $26.86 billion in August, data released by the Department of Commerce on Thursday showed.
However, the deficit narrowed on a year-on-year basis from around $33 billion recorded in September 2025.
India’s merchandise exports jumped 23 per cent year-on-year to a four-month high of $44.40 billion in September.
The growth in goods exports was driven by a broad-based increase in shipments across sectors, with particularly strong growth in petroleum products, meat, dairy and poultry products, handicrafts and some cereals, Commerce Secretary Rajesh Agrawal said.
Merchandise imports rose nearly 11 per cent year-on-year in September to $74.61 billion.
Cumulatively, goods exports stood at $259.89 billion during April-September, up nearly 19 per cent year-on-year.
Imports rose 16 per cent year-on-year to $437.53 billion in the first six months of financial year 2026-27 (FY27).
As a result, the merchandise trade deficit stood at $177.64 billion during the six-month period.
Strong growth in merchandise exports has also increased their contribution to gross domestic product (GDP), after the share of exports recorded a consistent decline over the past three financial years.
Exports accounted for 14 per cent of GDP in the first quarter of FY27, according to the latest available data.
Following a slowdown in global demand in FY24 and FY25, and steep US tariffs on Indian goods in FY26, the share of exports in GDP declined to 11.3 per cent in FY26 from 11.7 per cent in FY25 and 12.5 per cent in FY24.
At 14 per cent of GDP in Q1FY27, the share of exports has recovered to the level seen in FY23 — a year when annual merchandise exports were at a record high.
